トップメッセージ
Top management’s message

worked as a corporate group engaged in the social infrastructure indispensable to industries
and people’s lives, promoting the fusion of mechanical technology, electrical technology,
Top Message

Water supply and sewage works
are essential for preventing
the spread of novel coronavirus
infections.
The METAWATER Group iscommitted to sustaining
the water and environmental
infrastructure that is indispensable
to people’s lives.

Management and Operations Overview

In April 2008, the METAWATER Group was established as the first comprehensive engineering
enterprise in Japan engaged in the water and environmental fields. Since then, we haveICT, and operation and maintenance know-how, to develop our water, sewage, and resource
environment (waste recycling) businesses. Much of Japan’s water and sewage infrastructure
was developed during a period of high economic growth, and the aging of these facilities andequipment is becoming more serious. Measures to protect against natural disasters such as
earthquakes, torrential rains, and typhoons, which have been occurring frequently in recentyears, are also a major issue.
Additionally, the global spread of the novel coronavirus since January 2020 has increased therole water supply and sewage works play, which are a cornerstone of public health. However,
local governments that plan and operate water and wastewater business are having problemsof their own, such as a shortage of engineers and a decreased income due to a declining
population.
In order to solve these issues, wider area management and further comprehensiveness throughpublic-private partnerships (PPP), which have been examined up to now, are now moving fromthe examination stage to the implementation stage, including legal development. Our Grouphas been steadily building up its track record, developing technologies that make use of ICT,etc., and formulating concrete codes of conduct that can be shared by all Group employees.
We are finally ready to move on to concrete measures. We will continue to make sincere

Yasushi Nakamura
President and Representative Director

efforts to become a corporate group that can be entrusted with social infrastructure withpeace of mind and contribute to the sustainability of water and environmental infrastructure,
which is essential to people’s lives. We will also contribute to the United Nations’ “Sustainable
Development Goals (SDGs)*1” through both business and CSR activities.

Before being designated as the President and Representative Director in June 2016, he experienced a series ofmanagement positions in the Plant Engineering and Service Solution Divisions, as well as accepting the role of
Executive General Manager of the Corporate Strategy Planning Division. He has been engaged as a key memberof the development of the Water Business Cloud (WBC), and is well versed in business execution in a wide
range of fields supported by his affluent experience.

7METAWATER REPORT 2020

METAWATER REPORT 20208トップメッセージ
Top management’s message

The business environment surrounding us is undergoing majorchanges. Aging facilities and equipment are being renewed,
measures against natural disasters are being taken, and thebusiness continuity of water and environmental infrastructure
is becoming increasingly more important as a cornerstoneof public health. In response to these changes, our Group
is strengthening our corporate structure in order to realize
our long-term vision of 200 billion yen in sales, through theimplementation of the “Mid-Term Management Plan 2020”(April 2018 to March 2021).
Under the “Mid-Term Management Plan 2020”, in addition toconventional development investments, we will implement
development of products, solutions, and new businesses as“strategic development investments” that are essential for
medium- to long-term growth. As part of our business strategy,
we are capturing replacement demand and reinforcing theEngineering, Procurement and Construction (EPC) business,while at the same time steadily increasing the Operationand Maintenance (O&M) business, which is one of our stockbusinesses. We are also working to expand our PPP and overseas
businesses, which are growth areas, through regional and partner
strategies that capitalize on our achievements thus far.
Regarding the PPP business, the implementation of the “revisedWater Supply Act” in October 2019 is expected to increase thenumber of further comprehensiveness projects as well as thedemand for wider area management projects represented byconcessions. The METAWATER Group has participated in about
half of the approximately 60 PPP projects in the water supply
and sewage field, and has been involved in a variety of further
comprehensiveness projects. Looking ahead to the full-scale
implementation of wider area management projects in the“Mid-Term Management Plan 2020”

future, we will further promote reductions in construction costs
and improvement of operation and maintenance efficiency
through the incorporation of cutting-edge technologies such as
AI and ICT in addition to the “three centers” centered aroundthe “Training center for facility operators”, “Supply center forparts”, and “Knowledge center”. In addition, we will contributeto the sustainability of water and environmental infrastructure
through “WOODAP* 2”, our original concepts for design,
construction, operation, and maintenance centered aroundquick recovery of water and sewage facilities in the event of adisaster.
As for our overseas business, in addition to the German
company FUCHS* 3 joining our Group in May 2019, theAmerican company Wigen*4 joined us in April 2020. As a result,in North America, AAS*5, which offers wastewater solutions,and Wigen, which offers water supply and reclaimed drinking
water solutions, have joined forces to strengthen our businessplatform. In Europe, we are expanding the use of filtration
technology in response to the strengthening of environmental
regulations. In Asia and other regions, we will continue toaddress local needs through means such as the use of ODA*6.
On the capital policy front, in November 2019, we acquired 4.2
million shares of our company stock held by NGK INSULATORS,
LTD. and Fuji Electric Co., Ltd. (2 million shares from NGK and
2.2 million shares from Fuji Electric) through a tender offer,and increased our year-end dividend forecast for the fiscal year
ended March 31, 2020 to 40 yen per share, enhancing capitalefficiency (ROE) and returning profits to shareholders.
We have also been promoting further work style reforms, such asby improving the telework environment and shortening scheduledworking hours. In the future, as a second stage we will work toreform the work flow and create a working environment whereemployees can actively work with a high level of productivity.

1

Expanding strategic
development investments

Strengthening and2
expanding business3

Engaging in continued
ESG initiatives

Enhancing development of products,solutions, and new businesses that are
essential for medium- to long-term growth
Promoting efforts to strengthen coreareas and expand growth areas
Promoting activities that contribute tothe environment and local communities,
as well as actively strengthening
corporate governance(Consolidated)

FY ended March 2019
(Results)

FY ended March 2020
(Results)

FY ending March 2021
(Targets)

Orders received

123.8billion yen

125.0billion yen

140.0billion yen

Sales

117.3billion yen

128.7billion yen

130.0billion yen **Operating profit
Net profit
ROE

7.6billion yen

8.2billion yen

1

METAWATER REPORT 2020

The METAWATER Group is the first water and environmental
infrastructure company to be classified as a “electric powerof mind. We believe that these efforts can only be achieved
through “partnerships” with citizens, local governments,
partner companies, and local companies all working together.
We will continue to consider and promote concrete measuresand gas” on the Tokyo Stock Exchange by industry, and ourbusiness activities themselves play a role in CSR. We also
believe that as a good corporate citizen it is our responsibility

5.2billion yen

5.7billion yen

6.2billion yen

9.1%

10.5%

10.0% or moreto achieve these three goals of the SDGs.

to continue to be a fair and sincere company and to contributeto the sustainable development of society and the global
environment through both our CSR and business activities.
To this end, in light of the expectations of our stakeholders
and changes in society and the business environment, wewill strengthen and sustain our ESG (Environment, Social, andGovernance) initiatives to become a company trusted by all.
With regard to the environment, we are promoting
environmental protection and conservation activities throughour business activities. Regarding society, we are promoting
work style reforms and diversity based on the idea that “people
are our greatest asset”. We are also promoting initiatives forsafety, health, and quality, as well as environmental awarenessand community contribution activities. As for corporate
governance, we are working to enhance the efficiency andstrength of our management structure, including compliancewith the Corporate Governance Code, and strengthen risk
management, including achieving more thorough complianceand strengthening internal control functions, BCP* 7, andinformation security. We are also aiming to achieve highly
reliable and transparent management through active
communication with stakeholders in accordance with ourDisclosure Policy. Of the 17 SDGs, we have positioned Goals
6, 11, and 17 as priority areas. We take the “for all” part ofGoal 6, “ensure availability and sustainable managementof water and sanitation for all” seriously, aiming to create aStage 1

Resolution on
FY ended March 202010increase in% operational efﬁciency

In-vehicle ceramic
membrane filtration
systemDelivering mobile water purification
systems to emerging countries in Asia
and Africa to ensure a safe water supply
even in the event of a natural disaster

SDGs the METAWATER Group is focusing on*1 Sustainable Development Goals (SDGs)	Adopted by the United Nations in 2015 with the aim of achieving a better and sustainable world
by 2030. It consists of 17 goals and 169 targets to achieve said goals.
*2 	WOODAP: Concepts for design, construction, operation, and maintenance centered around quick
recovery in the event of a disaster*3 FUCHS Enprotec GmbH
*4 Wigen Companies, Inc.
*5 Aqua-Aerobic Systems, Inc.
*6 Official Development Assistance (ODA)*7 Business Continuity Plan (BCP)

Promotion of work flow reforms
Stage 2Stage 320FY ending% from the previous year
March 2021 Up30% total increase together with Stage 1

Institutional reform

Work flow reforms

Development of the PPP business

1Development of a remote business environment

1

Review of operations (applying WOODAP)

1

Analysis of operation management① Development of an ICT environment② Development of satellite offices③ Recommending working from home2

Promote outsourcing

2

Sophistication of operations

3

Organize a specialized organizationthat performs only common tasks

9.0billion yen**1 On April 27, 2020, forecast sales for the fiscal year ending March 2021 were revised from 128.0 billion yen
to 130.0 billion yen

9community where everyone has access to clean water andsanitation, and can continue to live with comfort and peace

Goals of the Mid-Term Management Plan

Establishing a business structure capable of realizing our long-term vision
Key measures

We aim to be a company that can contribute to the SDGs
as a water and environmental infrastructure company.

Management and Operations Overview

We will continue to implement bold measures torespond to the rapidly changing business environment.

2

Expansion of non-core flex time operation

3

Introduction of a four-day workweek system

4

Reduction of regular working hours

5Implementation of ABW**2 (May, West Japan)

Productivity improvements + quality improvements +safety assurance

4

Highly transparent performance evaluations
ASHITA-TEAM “Zettai! Hyoka®” “ASHITA-CLOUD™ HR”
5 Preparation for the DX era
30% of the time created will be spent preparing DX**2 ABW (Activity-Based Working): A system for improving performance by selecting a work place according to the work content and purpose (Refer to Topics on page 46 for details)

METAWATER REPORT 202010